The Accountant at Peacock Company Has Determined That Gross Profit

question 55

Multiple Choice

The accountant at Peacock Company has determined that gross profit amounted to $6,500 using the FIFO costing method. If the grossprofit is $1,060 greater than if the LIFO costing method were used, what would be the amount of gross profit under the LIFO method?

• A) $0
• B) $5,440
• C) $6,500
• D) $7,560

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